FEC Approves N1.4bn For Design Of New DPR Building

The Federal Executive Council (FEC) presided by President Muhammadu Buhari on Wednesday approved the sum of N1.4 billion for the design of corporate head office of the Department for Petroleum Resources (DPR).

After the design, it would cost another N35 billion to construct the high rise building in the Federal Capital Territory, according to the Minister of State for Petroleum Resources, Ibe Kachikwu.

However, in a quick response to defend the huge expenditure, Kachikwu said it was the most reasonable amount settled for, out of the proposals received in connection with the project as it was going for just two percent.

He said, “FEC approved N1. 4 billion for the design of DPR head office in Abuja. The contract was awarded to Messers Arteck Practice Limited to design a 12-floor building at a plot of land which has already been allocated by the FCT.

“The DPR is currently based in Lagos and is the regulatory and supervisory arm of the Ministry of Petroleum Resources, and is instrumental in terms of income generation, it will enable DPR move to Abuja”.

Asked why the huge amount for the design, Kachikwu responded, “The contract was awarded to DPR tenders board, their bid was the lowest, the highest bid was about N3 billion. The total projected potential cost for the building when it is done is about N35 billion.

“So if you look at that as a percentage of the work, it is absolutely insignificant, in international terms it is very justifiable, it is less than two percent”.

Explaining further, he said, the FCT did mention in our deliberation that because of the new zoning policies, the previous plan which was to build a car park of another five floors along with the 12 floors have to be changed a little bit because they are taking possession of additional green area that were assigned to them.

“So they will build a lot of parking stations within the building. So I think because of the amount of work to be done and in line with international practice, it is quite frankly very reasonable.

“Let me also say that part of the programmes we have pursued in the ministry is how to get a lot of our parastatals to become independent and self financially generating agency and so get out of federal budget. Nigerian Content Management Development Board has done that, DPR is the one to do that next. So a lot of funding for this development is going to come out of DPR itself, not out of federal budgeting.

“The plan is that if we continue the way we are doing, a lot of federal agencies will be out of federal budgeting and be self-reliant. Be it PPPRA, DPR, PEF, that is the game plan. So far we have exited NCMDB and we are near exiting DPR and then PEF”.

Meanwhile, the Ministry of Information and Culture, under the purview of Lai Mohammed, got approval for the procurement of cameras, television packs and other broadcast equipment at a cost of N283.8 million for the Nigeria Television Authority (NTA).

The News Agency of Nigeria (NAN) got approval for the purchase of 15 Peugeot vehicles at N151.4 million, including ratification of anticipated approval for procurement of 12 units of 10-kilowatt FM transmitters from Canada (N561 million) and three outside broadcast vans for the Federal Radio Corporation of Nigeria (FRCN) at the cost of N311 million.

The total cost for the two FRCN contracts is valued at N873.52 million.

Meanwhile, the Federal Government also on Wednesday approved the sum of N1.556 billion as consultancy fee for Government Enterprise and Empowerment Programme (GEEP).

GEEP falls under existing social investment programmes of the government.

Minister of Industry, Trade and Investment, Okechukwu Enelamah, while briefing State House correspondents after the FEC meeting, explained that the fund is meant to engage a Programme Management Office Consultant and System Provider for GEEP.

He described the contract which is for providing services for 4.6 million people as viable.

He noted that the programme has provided credit for over 1.5 million Nigerians, adding that the government was targeting about four million people.

FEC also approved the establishment of a committee to come up with alternative ways to add to what government is doing in financing infrastructure.

source:independent